Hochul to approve nation’s first state-level data center pause

By Nick Reisman | 07/14/2026 06:41 AM EDT

The New York governor is wading into a thorny political issue amid environmental and energy use concerns.

Servers inside a data center

Servers are seen inside the data center of French company OVHcloud in Roubaix, northern France, on April 3, 2025. Sameer Al-Doumy/AFP via Getty Images

ALBANY, New York — Gov. Kathy Hochul is enacting the nation’s first state-level moratorium on large-scale data center construction amid concerns over the impact of the facilities meant to support artificial intelligence.

The move, being implemented through an executive order Hochul will sign Tuesday, pauses construction permits for up to one year so that state officials can create a regulatory plan addressing energy and environmental issues.

“As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Hochul said. “New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too.”

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The moratorium, which would likely run past Hochul’s November election, has been contemplated since at least last month, when POLITICO first reported the governor was weighing a data center construction pause through executive order. Permits that have already been issued for projects will not be impacted.

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